Glanbia reports ‘positive’ first quarter despite currency headwinds
Glanbia delivered positive revenue growth of 4.8pc at constant currency in the first quarter of 2018 from wholly owned continuing operations.
However, Interim Management Statement for the three month period ended 31 March 2018 noted that on a reported basis, reflecting the weaker US Dollar Euro foreign exchange rate, revenue decreased 8.1pc when compared to the same period in 2017.
The group highlighted in its outlook that if the average Euro US Dollar foreign exchange rate for the full year remains at similar levels to the average rate for the first quarter of 2018, Glanbia expects an approximate 8pc translational headwind to full year reported results.
Siobhán Talbot, Group Managing Director said “the year has started as planned and we reiterate our full year guidance of 5pc to 8pc growth in adjusted earnings per share, constant currency, from the continuing Group (pro-forma*) in 2018 with growth to be delivered in the second half of the year.”
The key driver of revenue increase on a constant currency basis was volume growth from both Glanbia Performance Nutrition and Glanbia Nutritionals which was 7.2pc. Acquisitions contributed 3.6pc growth in revenue.
Pricing declined by 6.0pc year on year driven by relatively weaker dairy markets and brand investment in Glanbia Performance Nutrition.
Glanbia Performance Nutrition (GPN) saw revenue increased by 9.3pc and this was driven by volume growth of 5.5pc, the Body & Fit acquisition delivering 7.8pc, offset by a price decline of 4.0pc.
Glanbia said GPN delivered volume growth in both the US and other key international markets. In the US, it said this was broad based across key channels. In non US regions, emerging markets delivered strong growth as GPN continues to benefit from the prior investment in building its international capabilities.